Stock Talk Weekly: Edition 6

Tristan Ramachandran

Jan 10, 2025

3 min read

Reviewing the Week of January 6th - January 12th

Major Market Events:

📉 Markets Minorly Decline Amid Rate Concerns: The U.S. stock markets suffered from concerning Federal Reserve policies and economic data. The S&P 500 declined 0.9%, the Dow Jones 0.6%, and the Nasdaq 1.3%. This week’s price action was brutal for the tech-heavy sectors.

📈 Strong Retail Sales Impress Analysts: December retail sales inflated by 0.5%, beating the 0.3% expectation. The ongoing holiday spending was a driving factor in the recent success of retail stocks; however, significant spending has raised concerns for consumer debt levels.

💡 Energy Prices Spike Following Supply Concerns: The price of Crude oil spiked 3.4% this week as a widespread fear of the global supply takes over. The scare influenced a rally that pushed energy stocks higher and drew investor attention to the sector.

This Week's Winners:

🟢 Amazon (AMZN): Amazon’s e-commerce platform showcased unparalleled performance this holiday season, achieving far beyond sale expectations and driving the share value up 6.8%. Additionally, AWS experienced significant growth, providing investors another reason to remain optimistic.

🟢 Exxon Mobil (XOM): As the Crude oil prices rose, Exxon joined the wave, gaining 5.7%. The price action was further supported by plans to maintain production cuts an additional positive results shared at the OPEC meeting.

🟢 Salesforce (CRM): Salesforce introduced its latest AI-driven CRM tools, driving stock prices up 5.2%.The tools are intended to improve productivity and customer engagement for the company’s clients.

🟢 Lululemon (LULU): The pattern continues–another big-name retailer surpasses sales growth expectations this holiday season. Lululemon’s exceptional performance signaled its ongoing consumer demand for high-quality athletic wear, prompting a 4.9% increase in share value.

🟢 Visa (V): Global payment volumes have increased and new partnerships with fintech companies are in the works. This news excited investors and Visa shares climbed 4.3%.

🟢 Procter & Gamble (PG): Concerning the impact of inflationary pressures on consumers, PG has reduced the prices of their products. These accommodations proved PG’s ability to adapt to changing markets and keep the consumers’ best interests in mind. These adjustments were recognized by the PG stock jumping 4.5%.

This Week's Losers:

🔴 Tesla (TSLA): Investors gradually lose confidence in Tesla as their Cybertruck production slows. On top of that, their Q4 delivery results were weaker than anticipated causing the share value to lose 6.5%.

🔴 Rivian (RIVN): The rise of EV competition and operational difficulties forced analysts to downgrade the stock. The negative sentiment led to Rivian stock falling 5.8%.

🔴 Coinbase (COIN): Coinbase shares declined 4.9% over regulatory scrutiny for cryptocurrency trading practices. The new wave of attention towards cryptocurrency has inspired many to invest while drawing close attention to larger platforms like Coinbase and its practices.

🔴 Apple (AAPL): Apple faces supply chain conflicts in China, ultimately slowing down iPhone sales. Similar to Tesla, this operational inefficiency resulted in Apple shares dropping 3.7%.

🔴 Peloton (PTON): Analysts are concerned about Peloton’s ability to sustain growth with its subscription-based fitness programs. The uncertainty coupled with diminishing confidence led to a 3.4% dip in Peleton's share value.

Upcoming Events:

📅 December CPI Report: On January 12th, inflation data for December will be released. Analysts are keeping an eye out for hints that rising inflation may be coming to a halt–impacting Federal Reserve decisions.

🎯 Big Bank Earnings: Big names such as JPMorgan Chase, Bank of America, and Citigroup have earnings reports set for next week. These major events will provide insight to the financial sector and it’s overall performance in this everchanging environment.

🎯 OPEC+ Announcements: The OPEC+ meeting will cover production levels and clear up the uncertainty surrounding global oil supply and demand.

📊 Consumer Sentiment Index: January’s data on consumer sentiment will be released–determining the confidence and spending trends expected as we progress in Q1.

Next Week's Watchlist:

⭐ Microsoft (MSFT): The attention remains on AI and cloud updates. Developments in Azure have been identified as a priority.

⭐ Chevron (CVX): Chevron’s future will be determined based on energy price movements and the updates from the OPEC+ meeting.

⭐ Netflix (NFLX): Investors are expecting up-to-date data about Netflix’s subscriber growth and ad-supported model before their earnings call.

⭐ Tesla (TSLA): Production updates for the Cybertruck are expected by many. Additionally, investors are looking at Tesla while they monitor changes in EV market trends.

⭐ Walmart (WMT): As 2025 progresses, investors are focused on Walmart’s retail performance and guidance.